Analyzing Fx-Forex Trading

Forex market is rapidly becoming hot favorites for people to start trading. The reason behind its growing popularity is Forex market provides international platform to its traders to trade and secondly you can start dealing in this market from just $100. However if you are a beginner than you need to grasp information which is available on internet. You need to first analyze the market which include predicting market trend and search for the software for trading etc before starting any business. Analysis in Forex Trading is mainly categorized in two categories viz Fundamental analysis and Technical analysis. The aim of both analyses is same to get knowledge but the method is different. Lets discuss on both category in detail:

Technical Analysis – In technical analysis we didn’t try to find the reason behind the reason of rising or falling price. Technical analysis is not concerned with the reason behind the price but concerned with the price only. Technical analysis only analyse the gaps between initital price and trading price. In technical analysis we are more concerned about price history and the potential trading opportunities. Technical analysis is sub divided into Moving Average and Relative Strength Index.

Fundamental Analysis – A beginner must take fundamental analysis in account while starting business in Fx Forex market. Even though it is advisable that even after become experience trader you should not leave fundamental analysis. Fundamental analysis is based on factors like social, political,economic and financial support of the country. There is no exact model for fundamental analysis , various expert prefer various model and sometime get different results based on which some experience profit while other experience loss. Through fundamental analysis you can predict economic condition however you can not find exact market prices. Fundamental analysis is not so easy therefore it is advisable to do it carefully the latest news and market data however while doing fundamental analysis you should not make yourself confuse with overloading information. Make your analysis with current market condition.